Income Beginner: Introduction to Deposit Accounts

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1.
The simplest kind of deposit account to set up and maintain is a _______.
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Passbook account. A passbook account is easy to start, offers immediate access to funds, and requires low minimum balances.
2.
All of the following are advantages of deposit accounts except _______.
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High rates of return. High rates of return are not an advantage of deposit accounts, which typically pay lower returns than other investment opportunities.
3.
Funds 'swept' from your asset management account are deposited into _______.
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A money market account. This lets unallocated funds earn a higher rate.
4.
Which of the following is a reason an investor might open a deposit account?
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All of the above. Investors open deposit accounts for all of these reasons.
5.
How much of your deposit account is insured by the FDIC or NCUA?
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$250,000 ($250,000 for retirement plan accounts). The FDIC or NCUA insures each depositor up to these limits.